HFCL stock has surged over 57 per cent thus far in April and seems on course to log its biggest monthly gain in over 5 years. The stock had registered its biggest single-monthly gain - up 63 per cent in May 2021.
Given the recent buying frenzy at the counter, and upcoming March quarter results, which will be announced on Thursday April 30 - HFCL is likely to hog the limelight in the near-term.
Brokerage firm Geojit in its latest report on the telecom and defence-related equipment company has projected an upside target of ₹150 for the stock in the coming 3 - 6 months time-frame.
HFCL's portfolio spans across high fiber count cables, routers, WiFi, data centre solutions, and defence systems including electronic fuses, radars, and thermal weapon sights, serving domestic and global customers.
From strong fundamental growth factors such as a rising order book and earnings visibility to a technical breakout on charts, here's why analysts at Geojit are bullish on HFCL stock.
Rising order book: After closing Q3FY26 with a strong order book of ₹11,125 crore (2.7x FY25 revenues), the company secured two large orders aggregating ~₹11,525 crore during March–April 2026, materially enhancing revenue visibility while underscoring its technological capabilities and execution credibility.
Defence boost: The company's foray into defence vertical offers medium-term revenue visibility, with electronic fuses nearing commercialization and a diversified portfolio targeting ₹400 - ₹500 crore revenue in FY27, scaling to >₹1,000 crore by FY28; this is further strengthened by the recent ₹25 crore Spiral EHL acquisition, consolidating aerostructures, radar, and thermal weapon systems under HASPL (subsidiary).
Long-term outlook remains favourable: Supported by a structural upcycle in fiber demand (AI data centres, 5G densification), rising export contribution, margin expansion toward ~18–20 per cent EBITDA, and balance-sheet strengthening post QIP and promoter infusion the long-term outlook remains favourable.
Valuations: As per market consensus, HFCL trades at ~31x one-year forward P/E, with valuations expected to normalize as earnings compound, high-margin segments scale up, and return ratios improve meaningfully over FY26–28E.
Technical outlook on HFCL Stock
Geojit in its report highlights that the stock has attracted buying interest at lower levels and delivered a breakout from a cup base formation, indicating a potential trend reversal.
Further, over the past four weeks, price action on the daily chart reflects a consistent higher high–higher low structure, supported by a series of bullish candles.
"Momentum indicators remain favourable, with RSI in the bullish zone near 77 and a positive MACD crossover signaling strengthening upward momentum," the brokerage explains.
Analysts at Geojit believe that the current setup presents a favourable risk-reward profile, with support for the stock seen around ₹86 and upside potential toward ₹150, making it suitable for a breakout-driven positional trade. This translates into a potential upside of around 40.2 from its last close.
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